IFTA - International Fuel Tax Agreement

IFTA is a fuel tax agreement formerly started by and among the 48 contiguous States and the 10 Canadian provinces bordering the US. Each tax rate will be calculated based on gallons purchased, miles traveled and GVWR with respect to all member jurisdiction. Since IFTA is estimated on a quarterly basis, you must report the tax before the due date of each quarter.

Is there an alternative to IFTA registration?

If a carrier qualifies as an IFTA license but does not wish to participate in the IFTA program, trip permits must be obtained from each IFTA member jurisdiction in which the vehicle travels according to the regulations of each member jurisdiction.

Should I register for IFTA in my state?

If your qualifying vehicle is used for carrying goods and people and possess a gross weight exceeding 26,000 lbs, then the vehicle must be registered for IFTA in its base jurisdiction or business place. Also, for vehicles with 3 or more axles irrespective of weight and vehicles that are used in conjunction with trailers or other components with an exceeding weight (more than 26,000 pounds) must also register IFTA.

No recreational vehicle is considered as a qualifying vehicle unless it is used for any business purposes.

To apply

Fill the IFTA application manually for the state you are in or reach an online permitting service like expressifta.com to apply the tax report for you. Once IFTA Quarterly Fuel Tax Report is approved, you will be given a set of decals along with an IFTA license. If you are applying manually, submit the application by mail to :

The Motor Fuel Tax Section
PO Box 1752
Little Rock, AR 72203.

Or in person to:

Motor Fuels Tax Department Ledbetter Building

1816 W 7th, Ste 2350
Little Rock, AR 72201

Preparing the quarterly fuel tax report with ExpressIFTA can ease your reporting process since they provide features like quick entries, bulk upload, offline record keeping, late returns, automatic multiple report generation, etc. From tax calculation to validation check every process will be taken care without any manual input.

What credentials will I receive?

You will be receiving a set of decals and an IFTA license. Each set cost $5 in Arkansas. While traveling interstate, you must carry a photocopy of originals in your vehicle since you are required to provide the license copy at the entrance for getting an authorized entry. The original license must be retained at your base jurisdiction or business place, and its validity will be for the calendar year January 1 through December 31.

Quarterly Returns

Due dates:

The due date for all quarterly returns falls on the last day of the month that comes after the end of the quarterly reporting period. Only a working or business day will be considered as the due date and if any comes on weekends or holidays the next day will be considered as a final due date.

Tax Return Reporting Quarters Due Date
January - March April 30
April - June July 31
July - September October 31
October - December January 31

Do I file a quarterly fuel tax report if I didn't run during the quarter?

Even if you have not operated your vehicle for any reason or did not purchase fuels for a particular quarter, you must file a zero IFTA tax report to the state.

What is the penalty and interest rate for filing a late quarterly fuel tax report?

Along with a penalty of $50.00 or 10% of the net tax due, an interest rate of .4167% per month will be owned for a taxpayer with respect to all member jurisdiction if he fails to file at the right time. This also applies to late filers, underpayment issues, and those who fail to remit taxes at the time.

Renewals

Renewals can be done online once the state mails you about the renewal period (2 months before expiration). You can also mail or apply in person.

How do I obtain a return?

Complete the application for the quarterly returns online or mail in person to the state to receive your license. However, the return must also be obtained for non-operational vehicles.

IFTA Rates For 1st Quarter 2019

State / Province Gasoline Special Diesel Gasohol Propane LNG CNG Ethanol Methanol E-85 M-85 A55 Biodiesel Electricity Hydrogen
ARKANSAS (AR) U.S.
Can.
0.2150
0.0761
0.2250
0.0795
0.2150
0.0761
0.1650
0.0584
0.0500
0.0177
0.0500
0.0177
0.2150
0.0761
0.2150
0.0761
0.2150
0.0761
0.2150
0.0761
0.2250
0.0795

Reference: https://www.iftach.org/taxmatrix4/choose_tableqnew.php